By Stuart Lacey
There is no denying that we live in an age of over-sharing. Ironically, while we are using social media to spread more information than ever before, we’re also becoming more concerned with how corporations use our personal data.
The problem is, consumers currently have very little control over how their data is used and shared. This is exacerbated by the fact that the inherent flaws in privacy policies leave us vulnerable to breaches of personal information. It is important to understand how the information we share is used. Where does the world stand on making changes to promote greater control of your Personally Identifiable Information (Pii) online?
Privacy was dead long ago. You just didn’t realize it.
Data gathering occurs every minute of every day -- from our social media activity to our use of mobile devices and apps. Many companies are acting as “data vendors,” amassing huge sets of data on our Pii with plans to subsequently sell it. The law only currently permits them to do so if they anonymize it. However, the use of data analytics now allows companies to reassemble anonymized data (for instance, Facebook’s Atlas program). Third party gathering resources such as data mining and facial recognition software are creating profiles that people have little to no idea about (like Facebook Shadow Profiles for unborn babies – obviously without their consent).
We complete documents with the same Pii over and over again.
All financial organizations and regulated entities must conduct Know Your Customer (KYC) practices when you open an account. Part of this process includes providing documentary proof of your Pii (i.e. your driver’s license and a utility bill to open a bank account). The problem is, although they have a copy of your Pii, regulations and privacy laws make it illegal for them to share it without your consent -- even with an affiliated office in a foreign location. Thus, we have mass duplication of data across industries and service providers, and mass annoyance for the consumer.
You likely don’t know what information you are sharing, or with what companies.
We all simply scroll through long, complex privacy policies and check the box next to “I agree to these terms” without understanding the full implications. While data gathering seems innocuous, you often don’t realize until later exactly what information was taken from your device. At a conference I attended earlier this year on privacy and the Internet, I heard the story of a man who learned of his wife’s affair only after 16 other app vendors already knew. These companies had access to phone data that tracked his wife’s location – a motel. Her wearable fitness device also recorded her heart rate rising significantly for a 28-minute period while her husband was out of town. It’s safe to say that the majority are unaware of how data we create is distributed, with which companies and for what purpose.
Innovation is outpacing data safety.
The race to bring new technology to market is exceeding the industry’s ability to regulate it all. Crowdfunding sites sometimes push products without proper disclosures around the requirements for privacy policies. In addition, devices like drones and other wearable technology are all capable of collecting more data than simply your location and demographics; and many can do so remotely without requiring your consent.
Privacy policies don't tell the whole story.
Chances are, even if you spent time thoroughly reading a privacy policy, you wouldn’t understand it. In a recent report, a team of seven attorneys spent seven days and still could not decipher the iTunes privacy agreement. Privacy policies are notorious for being complicated and obscure, but accepting the sign-off on these unintelligible agreements is simply not acceptable. Many global regulators are already moving to outlaw these “catch-all” policies and enacting new regulations requiring that rights and access be simple to understand.
It’s an opt-in world. And the U.S. needs to catch up.
The volume of content consumers receive is overwhelming, and the solution we have historically been offered is to actively unsubscribe (or opt-out). New devices and technologies are increasing the barrage on our senses (you will soon see head’s up display ads on your Google Glass). The U.S. is lagging behind Canada and Europe, which already require companies to obtain specific and informed up-front customer consent before sending them information. The shift to an opt-in world will hopefully give U.S. consumers greater control over personal data and relationships by granting permission to receive content instead of being bombarded until we opt-out.
It IS possible to have more control of your data and privacy.
There is no doubt that consumers are more aware of their privacy infringements, and regulators are pushing new laws to manage the collection and use of privacy policies. Organizations like Terms of Service Didn't Read, which deciphers corporations’ terms of service, are calling attention to this issue. Private innovation is bringing mobile tools which are reinventing and positively changing processes by returning the control of personal data to the one person who should have it – you.
In the future, we can expect the government and big corporations to eliminate centralized control of personal data. Instead, it will be distributed, empowering each individual to handle of their own information. Much of today’s technology designed to make life easier has removed paper, is available on apps and is free or low cost. Managing privacy is about to follow the same course.
Allowing another company to hold, manage and make money from your information will very soon be a thing of the past. The future will give you back control of your own data to protect, use and even monetize.
Stuart Lacey is an entrepreneur with a successful history of founding, building profitable companies and exiting cleanly; his latest venture is www.trunomi.com.
